Watchdog sees 19% jump in complaints

COMPLAINTS about banks and insurance companies surged 19% in the six months to September, the financial dispute handler said yesterday.

The financial services ombudsman, whose office was set up in April to take over the separate dispute resolution mechanisms that previously existed, said over 1,700 formal complaints were lodged by consumers and businesses that were unhappy with their banks or life assurance companies.

The new office was the first to be established on a statutory basis, giving it greater legal authority than the previous schemes, all of which were voluntary and had no legal backing as a result. The ombudsman can make awards of up to €250,000 which are binding on parties to a dispute. Decisions cannot be ignored by institutions or complainants and can only be overturned on appeal to the High Court.